5 joint-stock companies eyed to execute projects

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Deputy PM, panel have fruitful discussion on issue
KUWAIT CITY, July 27: Any project with an estimated total cost of KD 6 billion or more will not be implemented without passing through the constitutional and legislative channels, says Deputy Premier for Economic Affairs and State Minister for Development and Housing Affairs Sheikh Ahmad Fahd Al-Sabah.

Speaking to reporters after his meeting with the Housing Affairs Committee at the Parliament Tuesday, Sheikh Ahmad disclosed they discussed ways to expedite completion of the required procedures for the establishment of five joint-stock companies for a number of government agencies. He said these companies will be in charge of various projects, such as the Al-Khiran residential city, low-cost housing, Al-Zour power station, health insurance for expatriates, and border facilities development, which will be included in the annual plan of the government for fiscal 2010/2011.

Sheikh Ahmad confirmed the concerned authorities will start taking the necessary procedures for the establishment of a company for the low-cost housing project by mid-August. He revealed there are ongoing talks on the proposed creation of a local development fund to finance these projects to provide better investment opportunities for the government and the private sector.

Despite the lack of quorum, Sheikh Ahmad described his meeting with the committee as fruitful. He also unveiled his plan to call for another meeting to discuss the proposed development fund and a mechanism for receiving offers from companies interested in the low-cost housing projects.
Expressing his gratitude to Committee Chairman MP Ahmad Al-Saadoun and members Naji Abdulhadi, Hussein Al-Huraiti and Musallam Al-Barrak, Sheikh Ahmad affirmed the meeting has opened communication lines between various sectors to push for the implementation of vital development projects. He opined the government funding must be similar to banking and cash financing to guarantee the economic viability of these projects.

Commenting on the request of some MPs to hold a special parliamentary session to deliberate on the housing issue, Sheikh Ahmad asserted, "The sooner the better. Any move to speed up the completion of the development projects is positive. However, as a member of the government, I have to consult them to come up with our official stand on the issue." He added he will forward a letter to the Finance Committee next week to request for a meeting to discuss the mechanism for government funding.

Sheikh Ahmad affirmed the quarterly report on the development plan will be finalized this week to be ready for submission to HH the Prime Minister Sheikh Nasser Mohammad Al-Ahmad Al-Sabah upon his return from his official trip to South America.

Meanwhile, Al-Huraiti stressed the importance of holding an emergency session during Ramadan to ratify a bill on financing development projects, so the government can start the construction of housing cities.

During the meeting, Al-Huraiti presented a proposal to involve Kuwait Fund for Development in financing the projects. He said the Legislative Committee had earlier approved this recommendation; hence, the need to hold a special session to ratify this bill.

Al-Saadoun, on the other hand, urged the government to finalize the financing issue to come up with a clear vision on the implementation of the aforementioned projects.

In an unrelated development, MP Khalid Al-Adwa has submitted a proposal on obliging the Kuwaiti government to recognize the independence of Kosovo, establish diplomatic ties with this country, and open their respective embassies in Kuwait and Prishtina.

Al-Adwa pointed out the International Court ruling on the independence of Kosovo is a historic decision. He said the people of Kosovo have been suffering due to the massacre and genocide operations carried out by the Serbs. He reiterated the need for Kuwait to recognize Kosovo, following in the footsteps of 69 countries, including the US, Japan, Australia, Canada and 22 of the 27 members of the European Union.

By Abubakar A. Ibrahim

© Kuwait Times 2010